The Central Board of Indirect Taxes and Customs (CBIC) has notified the Customs (Finalisation of Provisional Assessment) Regulations, 2025, superseding the earlier 2018 regulations. These regulations streamline timelines, documentation requirements, enquiry procedures, payment and refund processes, and closure mechanisms for finalisation of provisional assessments under Section 18 of the Customs Act, 1962.

The regulations set out clear timelines and compliance mechanisms:

• Application: Applies to all provisional assessments pending or initiated after September 12, 2025.
• Submission of documents: Importers/exporters must submit requisitioned documents within 2 months, extendable up to 14 months in total; beyond this, the officer may finalise assessment based on available records.
• Enquiry: Enquiries must be completed within 14 months of provisional assessment, unless exceptional circumstances (e.g., litigation, directions from higher authorities) apply.
• Finalisation timeline: Provisional assessment should be finalised within 3 months of document submission/enquiry conclusion, extendable up to 2 years, with a further 1 year extension permissible by Commissioner.
• Payment & Interest: Importers/exporters may pay duty voluntarily during pendency; final assessment may require additional payment with applicable interest under Section 18(3).
• Closure: On finalisation, bonds and securities furnished at the time of provisional assessment are cancelled/refunded if no dues remain. Refunds, if any, will be processed as per Section 18(4) and (5).
• Penalty: Non-compliance attracts penalties under Section 158(2)(ii) of the Customs Act, without prejudice to other actions under law